Multiple choice

If cost price is Rs 80, over-head is Rs 20 and selling price is Rs 120, then the profit per cent is :

  1. $20%$
  2. $50%$
  3. $40%$
  4. $30%$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total cost = Cost price + Overhead = Rs 80 + Rs 20 = Rs 100. Profit = Selling price - Total cost = Rs 120 - Rs 100 = Rs 20. Profit percentage = (Profit / Total cost) × 100 = (20/100) × 100 = 20%. Always calculate total cost first by adding overhead to the cost price before finding profit percentage.

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